China Firm On Cutting Green Car Subsidies By 2021

Aaron Cole
by Aaron Cole

China’s finance minister said Saturday that the government will end green car subsidies by 2021 and let its market dictate whether EVs or plug-in hybrid can sell on their own in the country, Reuters reported.

Lou Jiwei told reporters that the government would cut subsidies by 20 percent over the next two years, by 40 percent before 2020 and eventually end subsidies altogether by 2021, according to the report.

China surpassed the U.S. last year in electric car sales, in part because of the government’s aggressive support. Few electric cars made in China are available outside the country, however its expected that Cadillac will build in China and sell in the U.S. a plug-in version of its CT6 sedan.

Lou said that China should consider a credit policy similar to a system in the U.S. Automakers in the U.S. can acquire and sell credits to other automakers based on emissions data.

“Credit trading is the most effective way to ensure government neutrality on the technology’s development. The market should be able to choose the technical route,” Lou said, according to Reuters.


Aaron Cole
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  • Anomaly149 Anomaly149 on Jan 24, 2016

    China needs a tailpipe emissions inspection regime way more than it needs hybrids. Some of those old clunkers with bad injectors and leaky gaskets spew some hideous chemicals. Just going to modern ICEs over what they're using currently would be an air quality improvement on its own.

    • Wmba Wmba on Jan 24, 2016

      Trying to wrap my head around all these old clunkers you speak of. China passed the US in 2009 in annual vehicle sales, so most of the vehicles already have fuel injection, the vast majority produced in JVs. Plus you can google China emission standards: https://www.dieselnet.com/standards/cn/ Not sure that a 25 year old view of China struggling around in rickety old two-stroke rickshaws, which is the vision your words put in my mind, is close to reality. If you want to talk hundreds, literally, of coal power plants without much pollution control, I could understand that. Plus a load of older diesel trucks.

  • Mcs Mcs on Jan 24, 2016

    Actually, I think some US subsidies for EVs will be running out before then. To be perfectly honest, given the battery and charging technology that's in the pipeline, I don't think they'll need subsidies in 2021. New battery tech is in pilot production now and will be in full production in the early 2020's. At the same time, get rid of oil subsidies. If we have so much, why pay subsides for drilling.

  • Big Al from Oz Big Al from Oz on Jan 25, 2016

    I believe there never should of been any subsidies, in China the USA or any nation to create an artificial market by the use of taxpayer monies. This is worse than technical barriers, it's on par with the Chicken Tax. Subsidies reduce incentives to progress with the best possible solutions that are the most cost effective. Why? To placate those minorities in our society, those who make or break political parties with those extra handful of votes. It would of been far cheaper and of more economical value to China and the US to develop less polluting power stations, provide natural gas to all home to remove the use of oil for heating in industry. We need to maximise our existing technologies first. Leave battery power for golf carts, forklifts, laptops/tablets and cordless drills/tools. Why does the government not subsidise my cordless drill or laptop?

  • Nickoo Nickoo on Jan 25, 2016

    China air quality is dangerously toxic in some cities and every Chinese person I know cares about the environment. This was a really dumb thing to say in China and he will soon be out of favor in the party.

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